Pay-Per-Call Trends: Performance-Based Ads to Grow Big in 2010

December 16, 2009

This article is included in these additional categories:

Analytics, Automated & MarTech | Local & Directories / Small Biz | Trade Shows & Events

As ad budgets shrink and pressure intensifies to show marketing ROI, US advertisers continue to express interest performance-based advertising, according to Telmetrics, which predicts that pay-per-call models are poised to experience explosive growth in 2010.

According to Telmetrics? the top pay-per call-trends for 2010:

1. Agencies buy ads and bill per call: With a growing variety of? media options available, advertisers will continue to challenge agency media plans and demand more pay-for-performance ad models. In 2010, agencies will buy ads via subscription and will bill back to customers on a pay-per-call basis.

2. Online media continue to adopt pay per call: Recognizing that calls are a cross-media metric and a metric that small advertisers quickly understand, digital players will continue to add pay per call to complement existing pay-per-click campaigns.

3. Quality of calls closely evaluated: As pay-per-call moves from infancy to mainstream, advertisers will want a more clear definition of call quality. Publishers and agencies will have to carefully consider what defines a billable call and will evaluate a call duration by media type and category while looking at repeat callers over variable time intervals. Also, there will be a continued emphasis on call recording for assessing leads.

4. No shift to pay-per-conversion: Pay-per-conversion – in which advertisers only pay for advertising if a sale is completed – will not take off this year, Telmetrics said. While calls make it easier to track conversions, the model presents too much risk for publishers and agencies as it relies on advertisers to convert calls to sales after the lead has been delivered.

“We see major growth for the pay-per-call model in 2010 because it offers important campaign performance visibility and gives advertising brokers – publishers, agencies, SEM resellers and others – another opportunity to monetize the leads their medium delivers,” said Bill Dinan, president, Telmetrics. “Also, pay per call presents a good way to ease smaller advertisers into digital media offering qualified and high-value phone leads with very little risk.”

September research from Telmetrics found that the number of local search pay-per-call advertising programs the company monitors tripled from January 2009 to June 2009, a sign, the firm said, that the recession is causing advertisers with reduced budgets to better track conversions and pay more attention to how traditional media are delivering results.

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